The Queensland government has extended an offer of financial support to Glencore to help secure the future of the Mount Isa copper smelter and Townsville refinery, urging the federal government to follow suit as the miner weighs the fate of its remaining copper processing assets in Australia.

“The Crisafulli government is committed to securing the ongoing operations of the Mount Isa copper smelter and Townsville refinery, because we back the workers, businesses and communities that rely on them,” Queensland Natural Resources Minister Tony Perrett said in a statement this week.

“Glencore is currently considering this offer.”

The move comes as Glencore prepares to close its last two copper mines in Mount Isa this week, ending more than seven decades of upstream copper operations in the state. The miner announced the closures last October, citing declining ore grades and deteriorating economics.

The shutdown has raised urgent questions about the future of the Mount Isa smelter, which is dependent on a continued supply of third-party ore and has faced mounting pressure from cheaper, subsidised Chinese competitors.

Glencore has been in talks with the Queensland and federal governments for months over potential support to keep the facility operating. Troy Wilson, COO of Glencore’s Australian metals business, recently said the company was operating on an uneven playing field, pointing to extensive subsidies for smelting operations in China.

With a decision expected by the end of September, the Queensland government’s offer is the first formal step toward averting a closure that could impact hundreds of jobs and the broader North Queensland economy.

“The federal government must now come to the table and do its share to protect jobs in North Queensland,” Perrett said.

The Mount Isa smelter currently processes more than one-million tons of concentrate a year, including material from third-party producers such as BHP's Olympic Dam project in South Australia.

FINAL BLAST

Since operations began in the 1950s, the Mount Isa Copper Operations (MICO) has produced hundreds of millions of tonnes of ore, supplying critical minerals to the world and driving the development of Mount Isa into one of Australia’s most iconic mining towns.

From its earliest mining shafts to its vast underground network spanning over 1 000 km of roadways and mine workings, MICO has stood at the forefront of mining innovation, safety and workforce development.

On Monday, MICO work crews gathered underground for the 'last blast', marking the final time explosives were fired underground at the site.

Wilson, who started his career more than 30 years ago at the zinc/lead mine right next door to MICO said that while mining was drawing to a close, the mines’ legacy would live on in the people, stories and history of Mount Isa and the region.

“Mount Isa Mines (MIM) including MICO has a rich history and for generations Australian miners have considered working at MIM a rite of passage,” Wilson said.

“This week, we say thank you to all MICO employees past and present and their families. Our thanks also go to the Mount Isa community who welcomed and supported this mine with pride and perseverance since its first operation.

“The contribution of MICO workers has been vital in shaping the legacy of this operation and the community surrounding it. The skills, resilience and teamwork demonstrated by generations of workers have not only driven our success but have also fostered a strong camaraderie shared across the crews.

“We thank our people for their commitment and the spirit of excellence they brought to MICO. It has been nothing short of remarkable and will be felt for years to come.”